View source for Local Production: Conditions and Success Factors

'''<span lang="EN-GB" style="font-size: 14pt; font-family: 'arial','sans-serif'; mso-bidi-font-family: 'times new roman'; mso-ansi-language: en-gb">Key factors for successful local production</span>''' 

<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'; mso-ansi-language: en-gb; mso-fareast-font-family: arial"><span style="mso-list: ignore">1)<span style="font: 7pt 'times new roman'">&nbsp;&nbsp;&nbsp; </span></span></span>'''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'; mso-bidi-font-family: 'times new roman'; mso-ansi-language: en-gb">Relevant market: </span>'''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'; mso-bidi-font-family: 'times new roman'; mso-ansi-language: en-gb">The demand of the relevant market should match the minimum size of one production unit. If a specific '''niche''' is big enough, the probability of success is higher. In Indonesia the niche was turbines for mini- and micro-hydro power, which has a high national demand and is not the core business of incumbents like ''Voith Hydro'', ''Ossberger ''etc.</span> 

<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'; mso-ansi-language: en-gb; mso-fareast-font-family: arial"><span style="mso-list: ignore">2)<span style="font: 7pt 'times new roman'">&nbsp;&nbsp;&nbsp; </span></span></span>'''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'; mso-bidi-font-family: 'times new roman'; mso-ansi-language: en-gb">Time factor: </span>'''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'; mso-bidi-font-family: 'times new roman'; mso-ansi-language: en-gb">Establishing local production takes time (5-10 years). This is the biggest obstacle for projects which are only funded by EnDev and do not have a longer sectoral mandate like a focal area.</span> 

<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'; mso-ansi-language: en-gb; mso-fareast-font-family: arial"><span style="mso-list: ignore">3)<span style="font: 7pt 'times new roman'">&nbsp;&nbsp;&nbsp; </span></span></span>'''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'; mso-bidi-font-family: 'times new roman'; mso-ansi-language: en-gb">Cluster: </span>'''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'; mso-bidi-font-family: 'times new roman'; mso-ansi-language: en-gb">The production site / firm should be located within an industrial cluster, where it is easier to get qualified suppliers, employees etc. '''Multi-product firms''' are in a better position because they can compensate low demand with other product lines and transfer relevant knowledge to new technologies.</span> 

<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'; mso-ansi-language: en-gb; mso-fareast-font-family: arial"><span style="mso-list: ignore">4)<span style="font: 7pt 'times new roman'">&nbsp;&nbsp;&nbsp; </span></span></span>'''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'; mso-bidi-font-family: 'times new roman'; mso-ansi-language: en-gb">No grants to the manufacturers</span>'''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'; mso-bidi-font-family: 'times new roman'; mso-ansi-language: en-gb">. Better use (soft) loans or even better create trust for long-term investments like the German Feed-in Law did.</span> 

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<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'; mso-bidi-font-family: 'times new roman'; mso-ansi-language: en-gb">Source: Outcome of a discussion during the GTZ mini-hydro power working group meeting in Nairobi, May 2009.</span> 

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<span lang="EN-GB" style="font-size: 14pt; font-family: 'arial','sans-serif'; mso-bidi-font-family: 'times new roman'; mso-ansi-language: en-gb">'''Examples'''</span>&nbsp; 

*[[Example: Mini & micro hydro power turbine manufacturing in Indonesia|<u>Example</u>: Mini &amp; micro '''hydro power '''turbine manufacturing in '''Indonesia''']] 
*[[Example: Wind power plants and components|<u>Example</u>: '''Wind power '''facilities and equipment]] 
*[[Example: Local manufacturing for solar lanterns (Bolivia)|<u>Example</u>: Local manufacturing for '''solar lanterns '''('''Bolivia''')]]